Top 20 Highest-Yielding Dividend Aristocrats Now | Yields Up To 4.9%

First Published on August 16th, 2022 by Bob Ciura for SureDividend

At Sure Dividend, we often steer income investors toward the Dividend Aristocrats. Investors looking for high-quality dividend stocks to buy and hold for the long-run, can find many attractive stocks on this prestigious list.

The Dividend Aristocrats are a select group of 65 stocks in the S&P 500 Index, with 25+ consecutive years of dividend increases.

You can download an Excel spreadsheet of all 65 Dividend Aristocrats (with metrics that matter such as dividend yields and price-to-earnings ratios) by clicking the link below:

Click here to download your Dividend Aristocrats Excel Spreadsheet List now.

We typically rank stocks based on their five-year expected annual returns, as stated in the Sure Analysis Research Database.

But for investors primarily interested in income, it is also useful to rank the Dividend Aristocrats according to their dividend yields.

This article will rank the 20 highest-yielding Dividend Aristocrats today.

High Yield Dividend Aristocrat #20: Cardinal Health (CAH)

•Dividend Yield: 2.9%

Cardinal Health is one of the “Big 3” drug distribution companies along with McKesson (MKC) and AmerisourceBergen (ABC). Cardinal Health serves over 24,000 United States pharmacies and more than 85% of the country’s hospitals. The company has operations in more than 30 countries with approximately 44,000 employees.

Cardinal Health recently concluded its fiscal 2022. For the fiscal fourth quarter, revenue of $47.1 billion rose 10.6% year-over-year, and beat estimates by $2.28 billion. Adjusted earnings-per-share of $1.05 missed estimates by $0.13 per share.

The company updated its outlook for the upcoming year. For fiscal 2023, the company expects adjusted earnings-per-share in a range of $5.05 to $5.40, compared with previous guidance of $5.15 to $5.25.

Click here to download our most recent Sure Analysis report on Cardinal Health (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #19: Medtronic plc (MDT)

•Dividend Yield: 2.9%

Medtronic is the largest manufacturer of biomedical devices and implantable technologies in the world. The company serves physicians, hospitals, and patients in more than 150 countries and has over 90,000 employees. Medtronic has four operating segments: Cardiovascular, Medical Surgical, Neuroscience and Diabetes. Medtronic has raised its dividend for 45 consecutive years. The company generated $32 billion in revenue in its last fiscal
year.

In May 2022, Medtronic raised its dividend to $0.68 per share; the company’s 45th consecutive yearly increase.

In late May, Medtronic reported (5/26/22) financial results for the fourth quarter of fiscal year 2022. Organic revenue grew only 1% over the prior year’s quarter due to supply chain disruptions, particularly in Surgical Innovations, and lockdowns in China.

Source: Investor Presentation

Due to these headwinds, adjusted earnings were flat and adjusted earnings-per-share grew only 2%, from $1.49 to $1.52, thus missing the analysts’ consensus by $0.04.

Medtronic issued lackluster guidance for the new fiscal year, anticipating 4%-5% growth of organic revenue and essentially flat adjusted earnings-per-share of $5.53-$5.65.

Click here to download our most recent Sure Analysis report on MDT (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #18: Essex Property Trust (ESS)

•Dividend Yield: 3.0%

Essex Property Trust was founded in 1971. The trust invests in west coast multifamily residential proprieties where it engages in development, redevelopment, management and acquisition of apartment communities and a few other select properties. Essex has ownership interests in several hundred apartment communities consisting of over 60,000 apartment homes. The trust has about 1,800 employees and produces approximately $1.6 billion in annual revenue.

Source: Investor Presentation

On July 26th, 2022 Essex reported second quarter results. Core FFO-per-diluted share increased 21.1% to $3.68 from $3.04 year-over-year. Total FFO per-diluted share increased 1.3% to $3.13 from $3.09 in the year-ago period. Net income decreased 13.0% to $0.87. The decrease in net income was primarily due to an unrealized loss on marketable securities and unrealized losses incurred by non-core co-investments. Same-property gross revenue increased by 12.7% and same-property net operating income increased by 16.7% year-over-year.

Meanwhile, Essex updated its 2022 core FFO per share guidance to $14.35 to $14.55, and net income per diluted share guidance to $4.76 to $4.96. ESS also expects full-year same-property revenue growth of 10.0% to 10.6% and same-property NOI growth of 13.0% to 14.0%.

Click here to download our most recent Sure Analysis report on ESS (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #17: Consolidated Edison (ED)

•Dividend Yield: 3.2%

Consolidated Edison is a holding company that delivers electricity, natural gas, and steam to its customers in New York City and Westchester County. It has annual revenues of nearly $13 billion.

In the 2022 second quarter, ConEd reported revenue of $3.42 billion, up 15% year-over-year and ahead of estimates by $300 million. Adjusted earnings-per-share of $0.64 beat estimates by $0.05.

Consolidated Edison confirmed its prior guidance for 2022 as well. The company expects adjusted earnings-per-share of $4.40 to $4.60 for the year. This would be a 2.5% increase from the prior year. The company also expects a five-year earnings growth of 5% to 7%.

Rate increases are a major driver of Consolidated Edison’s growth.

Source: Investor Presentation

Click here to download our most recent Sure Analysis report on ConEd (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #16: Stanley Black & Decker (SWK)

•Dividend Yield: 3.2%

Stanley Black & Decker is a world leader in power tools, hand tools, and related items. The company holds the top global position in tools and storage sales. Stanley Black & Decker is second in the world in the areas of commercial electronic security and engineered fastening.

On July 20th, 2022, Stanley Black & Decker announced it was raising its quarterly dividend 1.3% to $0.80, extending the company’s dividend growth streak to 55 consecutive years.

In the 2022 second quarter, revenue grew 15.5% to $4.4 billion, but was $350 million less than expected. Adjusted earnings-per-share of $1.77 compared unfavorably to $3.08 in the prior year and was $0.36 below estimates. Organic growth declined 6%. Sales for Tools & Outdoor, the largest segment within the company, experienced an organic decline of 9% as a 7% benefit from pricing was more than offset by a decline in volume.

The company also announced a cost reduction program that is expected to reduce expenses by $1 billion by the end of 2023 and by $2 billion within three years.

Stanley Black & Decker offered revised guidance for 2022. Due to inflationary pressures and lower demand, the company now expects adjusted earnings-per-share in a range of $5.00 to $6.00, down from $9.50 to $10.50 and $12.00 to $12.50 previously.

Click here to download our most recent Sure Analysis report on SWK (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #15: The Clorox Company (CLX)

•Dividend Yield: 3.2%

The Clorox Company is a manufacturer and marketer of consumer and professional products, spanning a wide array of categories from charcoal to cleaning supplies to salad dressing. More than 80% of its revenue comes from products that are #1 or #2 in their categories across the globe, helping Clorox produce more than $7 billion in annual revenue.

Source: Investor Presentation

Clorox reported third quarter earnings on May 2nd, 2022, and results were better than expected on both the top and
bottom lines. Adjusted earnings-per-share came to $1.31, which was 35 cents ahead of expectations. Revenue was up fractionally year-over-year at $1.8 billion, about $10 million ahead of estimates.

Net sales growth reflected higher shipments across all reporting segments, while organic sales rose 2%. The company noted the three-year average growth rate for net sales was up 5%, but this period encompasses the surge in revenue from COVID.

Gross margins plummeted 760 basis points to 35.9% of revenue, due mainly to higher manufacturing and logistics costs, as well as commodity costs. These were partially offset by the benefits of pricing increases and cost savings initiatives. Adjusted earnings-per-share were down 19% year-over-year, due primarily to lower gross margin, and partially offset by lower advertising spending and higher net revenue.

Click here to download our most recent Sure Analysis report on Clorox (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #14: Kimberly-Clark (KMB)

•Dividend Yield: 3.4%

Kimberly-Clark is a global consumer products company that operates in 175 countries and sells disposable consumer goods, including paper towels, diapers, and tissues.

It operates through two segments that each house many popular brands: Personal Care Segment (Huggies, Pull-Ups, Kotex, Depend, Poise) and the Consumer Tissue segment (Kleenex, Scott, Cottonelle, and Viva), generatingnearly $20 billion in annual revenue.

Source: Investor Presentation

Kimberly-Clark reported second quarter earnings on July 26th, 2022, and results were better than expected on both the top and bottom lines. Adjusted earnings-per-share was $1.34, which was three cents better than estimates. Revenue rose 7% year-over-year to $5.1 billion, which was $110 million better than expected.

Total revenue was up 7%, as forex reduced sales by 2%. Organic sales were up 9%, as net selling prices were up 9%, product mix increased 1%, and volumes offset that with a 1% decline. North America organic sales were up 11% in consumer products and up 8% in K-C Professional.

Click here to download our most recent Sure Analysis report on Kimberly-Clark (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #13: Chevron Corporation (CVX)

•Dividend Yield: 3.6%

Chevron is the third–largest oil major in the world. In 2021, Chevron generated 84% of its earnings from its upstream segment.

The company has increased its dividend for over 40 consecutive years.

Source: Investor Presentation

In the 2022 second quarter, Chevron generated revenue of $68.8 billion which increased 83% year-over-year, and beat estimates by $11.1 billion. Adjusted earnings-per-share of $5.82 also beat, by $0.79. The company was fueled mostly by higher commodity prices. Cash flow from operations came to $13.8 billion for the second quarter.

Click here to download our most recent Sure Analysis report on CVX (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #12: T. Rowe Price Group (TROW)

•Dividend Yield: 3.6%

T. Rowe Price Group is one of the largest publicly traded asset managers. The company provides a broad array of mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans and financial intermediaries.

On July 28th, 2022, T. Rowe Price reported second quarter results for the period ending June 30th, 2022. Revenue decreased 21.8% to $1.51 billion, which was $170 million less than expected. Adjusted earnings-per-share of $1.79 compared to $3.31 in the prior year and was $0.36 below estimates.

During the quarter, assets under management (AUM) declined $242.1 billion, or 15.6%, to $1.31 trillion. This decline was due to net client outflows of $14.7 billion, net distributions not reinvested of $227.4 billion, client transfers of $2.9 billion, and market deprecation. Operating expenses increased 1.7% to $947 million, but declined nearly 9% sequentially.

Click here to download our most recent Sure Analysis report on T. Rowe Price (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #11: ExxonMobil Corporation (XOM)

•Dividend Yield: 3.7%

Exxon Mobil is a diversified energy giant with a market capitalization above $300 billion. In 2021, the upstream segment generated 62% of the total earnings of Exxon while the downstream and chemical segments generated 8% and 30% of the total earnings, respectively.

In late July, Exxon reported financial results for the second quarter of fiscal 2022. Revenue of $115.7 billion rose 71% year-over-year, due mainly to higher oil prices, as well as increased production. Adjusted earnings-per-share of $4.14 beat estimates by $0.25. Cash flow from operating activities reached $20 billion for the quarter.

Click here to download our most recent Sure Analysis report on Exxon Mobil (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #10: Amcor plc (AMCR)

•Dividend Yield: 3.7%

Amcor is one of the world’s most prominent designers and manufacturers of packaging for food, pharmaceutical, medical, and other consumer products. The company is headquartered in the U.K.

Amcor reported its third-quarter results for Fiscal Year (FY)2022 on May 3rd. Sales were up 15.6% for the quarter compared to the third quarter of FY2021. This quarter, sales went from $3,207 million in 3Q2021 to $3,706 million, driven by price increases. Sales for the first nine months of the fiscal year were up 11% compared to the first nine months of FY2021.

On a comparable, constant currency basis, the first nine months’ net sales were 3% higher than the same period last year. Overall, the first nine months’ volumes for the Amcor Group were 1% higher than the same period the previous year, and price/mix had a favorable impact on net sales of 2%. Net income was also up slightly by 0.7% versus the third quarter of the last fiscal year and up 1.8% for the first nine of the year compared to the first nine months of FY2021.

For the nine months, adjusted EPS of $0.56 per share, up 11% on a comparable, constant currency basis compared to $0.51 per share earned for the nine months of FY2021.

Click here to download our most recent Sure Analysis report on Amcor (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #9: Federal Realty Investment Trust (FRT)

•Dividend Yield: 3.9%

Federal Realty was founded in 1962. As a Real Estate Investment Trust, Federal Realty’s business model is to own and rent out real estate properties. It uses a significant portion of its rental income, as well as external financing, to acquire new properties. This helps create a “snow-ball” effect of rising income over time.

Federal Realty primarily owns shopping centers. However, it also operates in redevelopment of multi-purpose properties including retail, apartments, and condominiums. The portfolio is highly diversified in terms of tenant base.

Source: Investor Presentation

Federal Realty reported Q2 earnings on 08/04/22. FFO per share came in at $1.65, up from $1.41 in the year-ago quarter. Total revenue increased 14.0% to $264.1M year-over-year. Net income available for common shareholders stood at $0.75, up from $0.57 in the year-ago period.

During the quarter, Federal Realty continued record levels of leasing with 132 signed leases for 562,111 square feet of
comparable space. The trust’s portfolio, during the quarter, was 92.0% occupied and 94.1% leased, up by 240 basis points and 140 basis points, respectively, year-over-year. That said, the trust maintained a 210 basis points spread between occupied and leased. Moreover, small shop leased rate was 89.3%, up by 360 basis points year-over-year. Federal Realty also reported Q2 comparable property operating income growth of 8.2%.

Meanwhile, the company raised its 2022 earnings per share guidance to $2.50-$2.65 from $2.36-$2.56 and FFO per diluted share guidance to $6.10-$6.25 from $5.85-$6.05. the company also expects comparable property income growth to be in the range of 5.5% to 7.0%.

Click here to download our most recent Sure Analysis report on Federal Realty (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #8: 3M Company (MMM)

•Dividend Yield: 3.9%

3M sells more than 60,000 products that are used every day in homes, hospitals, office buildings and schools around the world. It has about 95,000employees and serves customers in more than 200 countries.

For now, 3M is now composed of four separate divisions. The Safety &Industrial division produces tapes, abrasives, adhesives and supply chain management software as well as manufactures personal protective gear and security products.

The Healthcare segment supplies medical and surgical products as well as drug delivery systems. Transportation & Electronics division produces fibers and circuits with a goal of using renewable energy sources while reducing costs. The Consumer division sells office supplies, home improvement products, protective materials and stationary supplies.

On July 26th, the company reported second-quarter results. For the quarter, revenue fell 3% to $8.7 billion. Adjusted EPS declined 10% year-over-year, from $2.75 in Q2 2021 to $2.48 in Q2 2022.

Along with its quarterly results, the company separately announced that it will spinoff its healthcare segment. This is a major announcement, as the healthcare business itself generates over $8 billion in annual sales.

Source: Investor Presentation

The new 3M will consist of the segments which generated $26.8 billion of sales in 2021, while the healthcare spin-off will retain the product portfolio which generated $8.6 billion of sales in 2021.

Click here to download our most recent Sure Analysis report on 3M (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #7: AbbVie Inc. (ABBV)

•Dividend Yield: 4.0%

AbbVie Inc. is a pharmaceutical company spun off by Abbott Laboratories (ABT) in 2013. Its most important product is Humira, which is now facing biosimilar competition in Europe, which has had a noticeable impact on the company. Humira will lose patent protection in the U.S. in 2023.

Even so, AbbVie remains a giant in the healthcare sector, with a large and diversified product portfolio.

AbbVie reported its second-quarter earnings results on July 29. Revenue of $14.58 billion rose by 4.4% year-over-year while adjusted EPS of $3.37 beat estimates by $0.06. The company lowered full-year earnings guidance to a range of $13.78 to $13.98, from prior expectations of $13.92 to $14.12 per share.

Click here to download our most recent Sure Analysis report on AbbVie (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #6: Realty Income (O)

•Dividend Yield: 4.0%

Realty Income is a retail-focused REIT that owns more than 6,500 properties. It owns retail properties that are not part of a wider retail development (such as a mall), but instead are standalone properties.

This means that the properties are viable for many different tenants, including government services, healthcare services, and entertainment.

Source: Investor Presentation

The company’s long history of dividend payments and increases is due to its high-quality business model and diversified property portfolio.

Realty Income announced its second-quarter earnings results on August 3rd. Quarterly revenue of $810 million rose 75% and beat estimates by $34 million, fueled largely by the acquisition of Vereit. Adjusted FFO-per-share increased 10% year-over-year. The company invested $1.68 billion in 237 properties during the quarter, including $694 million invested in Europe.

Click here to download our most recent Sure Analysis report on Realty Income (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #5: Franklin Resources (BEN)

•Dividend Yield: 4.0%

Franklin Resources is a global asset manager with a long and successful history. The company offers investment management (which makes up the bulk of fees the company collects) and related services to its customers, including sales, distribution, and shareholder servicing.

On December 14th, 2021, Franklin Resources announced a $0.29 quarterly dividend, marking a 3.6% year-over-year increase and the company’s 42ndconsecutive year of increasing its payment.

On July 28th, 2022, Franklin Resources reported Q3 fiscal year 2022 results for the period ending June 30th, 2022. (Franklin Resources’ fiscal year ends September 30th.) Total assets under management equaled $1.380 trillion, down $97.7 billion compared to last quarter, as a result of $135.5 billion of net market change, distributions and other, and $19.8 billion of long-term net outflows.

For the quarter, operating revenue totaled $2.031 billion, down 7% year-over-year. On an adjusted basis, net income equaled $416 million or $0.82 per share compared to $494 million or $0.96 per share in Q3 2021. During Q3, Franklin repurchased 2.0 million shares of stock for $51 million.

Click here to download our most recent Sure Analysis report on Franklin Resources (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #4: Leggett & Platt (LEG)

•Dividend Yield: 4.2%

Leggett & Platt is an engineered products manufacturer. The company’s products include furniture, bedding components, store fixtures, die castings, and industrial products. Leggett & Platt has 14 business units and more than 20,000 employees. The company qualifies for the Dividend Kings as it has 50years of consecutive dividend increases.

In the 2022 second quarter, revenue of $1.33 billion rose 4.7% year-over-year. Earnings-per-share of $0.70 beat estimates by a penny. The company lowered full-year guidance, now expecting sales in a range of $5.2 billion to $5.4 billion, and earnings-per-share of $2.65 to $2.80 for 2022.

Click here to download our most recent Sure Analysis report on Leggett & Platt (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #3: V.F. Corp. (VFC)

•Dividend Yield: 4.2%

V.F. Corporation is one of the world’s largest apparel, footwear and accessories companies. The company’s brands include The North Face, Vans, Timberland and Dickies. The company, which has been in existence since 1899, generated over $11 billion in sales in the last 12 months.

In late July, V.F. Corp reported (7/28/22) financial results for the fiscal 2023 first quarter. Revenue of $2.26 billion rose 3.2% year over year and beat analyst estimates by $20 million. The North Face brand led the way with 37% currency-neutral revenue growth in the quarter.

However, inflation took its toll on margins and profits. Gross margin of 53.9% for the quarter declined 260 basis points, while operating margin of 2.8% declined 640 basis points. As a result, adjusted EPS declined 68% to $0.09 per share.

Adjusted earnings-per-share grew 67%, from $0.27 to $0.45, but missed analysts’ consensus by $0.02. For the new fiscal year, V.F. Corp expects revenue growth of at least 7% and adjusted earnings-per-share of $3.30 to $3.40.

Click here to download our most recent Sure Analysis report on V.F. Corp. (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #2: Walgreens-Boots Alliance (WBA)

•Dividend Yield: 4.7%

Walgreens Boots Alliance is the largest retail pharmacy in both the United States and Europe. Through its flagship Walgreens business and other business ventures, the company employs more than 325,000 people and has more than 13,000 stores.

On June 30th, 2022, Walgreens reported Q3 results for the period ending May 31st, 2022. Sales from continuing operations dipped -4% and adjusted earnings-per-share decreased -30% over the prior year’s quarter, from $1.37 to $0.96, mostly due to peak COVID-19 vaccinations in the prior year’s period. Earnings-per-share exceeded analysts’ consensus by $0.03. The company has beaten analysts’ estimates for 8 consecutive quarters.

Walgreens reiterated its guidance for low-single digit growth of its annual earnings-per-share.

Click here to download our most recent Sure Analysis report on Walgreens (preview of page 1 of 3 shown below):

High Yield Dividend Aristocrat #1: International Business Machines (IBM)

•Dividend Yield: 4.9%

IBM is a global information technology company that provides integratedenterprise solutions for software, hardware, and services. IBM’s focus isrunning mission critical systems for large, multi-national customers andgovernments. IBM typically provides end-to-end solutions.

The company now has four business segments: Software, Consulting, Infrastructure, and Financing. IBM had annual revenue of ~$57.4B in 2021 (not including Kyndryl).

IBM reported solid results for Q2 2022 on July 18th, 2022. Company-wide revenue increased 16% while diluted adjusted earnings per share rose 43% to $2.31 on a year-over-year basis. Diluted GAAP earnings per share rose 79% to $1.61 in the quarter from $0.90 in the prior year.

Revenue for Software increased 12% due to 9% growth in Hybrid Platform & Solutions and a 19% increase in Transaction Processing. Revenue was up 17% for RedHat, 8% for Automation, 4% for Data & AI, and 5% for Security. Consulting revenue increased 18%. The book-to-bill ratio is a healthy 1.1X.

Click here to download our most recent Sure Analysis report on IBM (preview of page 1 of 3 shown below):

Final Thoughts

High dividend yields are hard to find in today’s investing climate. The average dividend yield of the S&P 500 Index has steadily fallen over the past decade, and is now just 1.5%.

Investors can find significantly higher yields, but many extreme high-yield stocks have questionable business fundamentals. Investors should be wary of stocks with yields above 10%.

Fortunately, investors do not have to sacrifice quality in the search for yield. These 20 Dividend Aristocrats have market-beating dividend yields. But they also have high-quality business models, durable competitive advantages, and long-term growth potential.

You may also be looking to invest in dividend growth stocks with high probabilities of continuing to raise their dividends each year into the future.

This article was first published by Bob Ciura for Sure Dividend

Sure dividend helps individual investors build high-quality dividend growth portfolios for the long run. The goal is financial freedom through an investment portfolio that pays rising dividend income over time. To this end, Sure Dividend provides a great deal of free information.

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